No. S 870
Competition Act 2004
(Act 46 of 2004)
Competition Act (Amendment of Third Schedule) Order 2005
In exercise of the powers conferred by section 92 of the Competition Act 2004, the Minister for Trade and Industry hereby makes the following Order:
Citation and commencement
1.  This Order may be cited as the Competition Act (Amendment of Third Schedule) Order 2005 and shall come into operation on 1st January 2006.
Amendment of Third Schedule
2.  The Third Schedule to the Competition Act 2004 is amended —
(a)by deleting sub-paragraph (2) of paragraph 8 and substituting the following sub-paragraph:
(2)  In this paragraph, “vertical agreement” means any agreement entered into between 2 or more undertakings each of which operates, for the purposes of the agreement, at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services and includes provisions contained in such agreements which relate to the assignment to the buyer or use by the buyer of intellectual property rights, provided that those provisions do not constitute the primary object of the agreement and are directly related to the use, sale or resale of goods or services by the buyer or its customers.”; and
(b)by inserting, immediately after paragraph 8, the following paragraph:
Agreements with net economic benefit
9.  The section 34 prohibition shall not apply to any agreement which contributes to —
(a)improving production or distribution; or
(b)promoting technical or economic progress,
but which does not —
(i)impose on the undertakings concerned restrictions which are not indispensable to the attainment of those objectives; or
(ii)afford the undertakings concerned the possibility of eliminating competition in respect of a substantial part of the goods or services in question.”.

Made this 21st day of December 2005.

Permanent Secretary,
Ministry of Trade and Industry,
[MTI 74/3-2-8; AG/LEG/SL/50B/2005/6 Vol 1]